Insurers must innovate to keep pace with automated vehicles
Automated and semi-automated vehicles challenge one of the basic assumptions of motor insurance: that a human driver is responsible for most accidents. As software takes over more of the driving task, liability may shift toward manufacturers and technology suppliers.
This raises practical questions for insurers. Who is at fault when a driver-assistance system fails? How should premiums reflect software versions and updates? And how will claims be investigated when the key evidence is vehicle data rather than witness statements?
Regulation is still catching up in many countries. Insurers and reinsurers that build expertise in vehicle data, product liability and partnerships with manufacturers will be better prepared as motor risk gradually moves from personal lines toward commercial and product liability.